What is the maximum amount that each firm will be willing

Reference no: EM13244370

Consider a market composed of five identical firms each with aconstant marginal cost of production of $50. They face a marketdemand given by Q=2,500-10P. Each firm is currently charging thecompetitive price.

(a) The profits of each firm in this situation are $________.

(b) These firms are thinking of forming a cartel. They need a poolof funds to maintain this cartel. They have agreed to share thecartel profits equally. The maximum amount that each firm will bewilling to contribute to the pool is $_______.

Reference no: EM13244370

Questions Cloud

Twelve new members have joined the european union : Twelve new members have joined the European Union in the last 6 years, bringing the total membership to 27 countries. Select one of those new members and briefly summarize that country's overall political and economic situation, and the role of the E..

Discuss whether a monopoly can provide any benefit : 1 -List one industry that is an example of a perfectly competitve industry and one that is an example of a monopoly. 2-Explain and discuss why these industries are examples of perfect competition and a monopoly using the characterstics of these ind..

Led american colonist to the boston tea party : What are two key elements that led american colonist to the boston tea party and eventually to the american revolution

Find the ball''s maximum height after it bounces : You throw a bouncy ball directly down toward the ground. When it leaves your hand, 1 m above the ground, it is moving at 5 m/s. What is the ball's maximum height after it bounces

What is the maximum amount that each firm will be willing : Consider a market composed of five identical firms each with aconstant marginal cost of production of $50. They face a marketdemand given by Q=2,500-10P. Each firm is currently charging thecompetitive price.

Figures in the phoenician-aramean and lydian societies : Who were some of the major ruling figures in the Phoenician, Aramean, and Lydian societies? Also when did the Aramean empire end?

What are the main factors that would influence : The inventor invariably cannot find someone to fund the development of his product but the public company is able to raise all the capital it requires. Why is this so? What are the main factors that would influence a Japanese car company in its choic..

Explain what amperage is required to plate : A Cr^{3 + } aq solution is electrolyzed, using a current of 7.50 A}. What mass of Cr}( s) is plated out after 1.80 days? also What amperage is required to plate out 0.300 mol Cr from a Cr^{3 + } solution in a period of 7.20 h

What was the effective resistance of the capacitor : When the switch was first closed to charge the capacitor, what was the effective resistance of the capacitor when it was fully charged

User Account

All Pages